You have to feed a bull every day and we just didn’t do it today! Despite the weather being “not perfect” in South America we’re still another day closer to a huge crop hitting the market…….On top of that we’ve a lot of beans and corn to move out of temporary storage in the next 6 to 8 weeks…………..Spreads and flat price on beans and corn need some extraordinary interstellar demand to show up to generate the incentive for end users to step up their buying program………………It appears that beans and corn are still a buyer’s market……………………Wheat still appears to have the most solid fundamentals and could be the most likely grain to generate and sustain a rally but, it’ll need corn and beans to stabilize……….Wheat spreads are still very likely to remain firm as the Argentina crop is losing quality and this just continues the same story out of the Black Sea……………Incentive to buy might start happening when the US crops starts breaking dormancy in March………..We’ve abundant moisture and the fewer planted acres might be starting off in solid shape but the situation in last half March through July is what matters………………..The running average of H/K in Chicago is 23% and KC 44% which suggests that storage rates could become cheaper in late February………………President Trump may not be attending the Davos World Summit on January 22 to 25 if the stalemate on the shutdown/shakedown continues which might be a negative as traders might have been looking at that forum as a possible location to announce an agreement…………………
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